Abstract

The field of social innovation is developing rapidly all over the world, with new institutions, methods and activities. The article deals with some aspects of the innovative model. The necessity of formation and development of the knowledge economy. Studied the shortcomings of the existing model of innovation, in particular, the impact on it of the world of globalization, the lack of equal international relations, the low efficiency of public administration and regulation of the national economy. In particular, the article highlights the impact of macroeconomic factors on the implementation of innovation policy, state strategic objectives and their financial support in comparison with foreign countries. The dynamics of science financing were analyzed in dependence of their sources. Grounded priorities of innovation policy of the state: the development of high-tech production; ensuring an adequate level of financing of domestic science; increasing the share of innovation-active industrial enterprises, development of new techniques and technologies; development of venture businesses. Exacerbated by the current economic crisis, Europe is confronted with many complex and interrelated socio-economic challenges affecting individuals, firms, sectors and regions. While traditional innovations are of utmost importance for regional development, its impact as regards regional socio-economic challenges seems to be not sufficient. Regional resilience and competitiveness additionally require new ways of thinking, new alliances, new processes and new forms of dialogue. Social innovation as new solutions leading to improved capabilities, new forms of collaboration and a better use of societal resources can help regions to sustainably cope with social challenges. Against this backdrop this paper examines the necessity for new modes of policy production arising from the revitalization of social innovation as means of tackling the socio-economic challenges that regions are facing. It argues that a positive role for the state in stimulating, resourcing and sustaining social innovation means moving beyond traditional ways of designing and delivering public policies and programs.

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